Earnings and Dividends Per Share

The following table presents the computations of basic and diluted earnings per share attributable to Legg Mason, Inc. stockholders ("EPS"):



	Three Months Ended December 31,					Nine Months Ended December 31,
	2018			2017		2018			2017
Basic weighted-average shares outstanding for EPS	85,537			90,377		85,381			92,770
Potential common shares:
Dilutive employee stock options	—			456		—			429
Diluted weighted-average shares outstanding for EPS	85,537			90,833		85,381			93,199

Net Income (Loss) Attributable to Legg Mason, Inc.	$	(216,888	)	$	149,222	$	(77,995	)	$	275,806
Less: Earnings (distributed and undistributed) allocated to participating securities	1,049			5,347		3,190			9,639
Net Income (Loss) (Distributed and Undistributed) Allocated to Stockholders (Excluding Participating Securities)	$	(217,937	)	$	143,875	$	(81,185	)	$	266,167
Net Income (Loss) per share Attributable to Legg Mason, Inc. Stockholders
Basic	$	(2.55	)	$	1.59	$	(0.95	)	$	2.87
Diluted	(2.55		)	1.58		(0.95		)	2.86

The weighted-average shares exclude weighted-average unvested restricted shares deemed to be participating securities of 3,104 and 3,357 for the three months ended December 31, 2018 and 2017, respectively, and 3,104 and 3,322 for the nine months ended December 31, 2018 and 2017, respectively.

During the nine months ended December 31, 2018, Legg Mason purchased and retired 394 shares of its common stock for $15,547 under net share settlements of deferred compensation award vesting. The retired shares reduced weighted-average shares outstanding by 342 shares for the nine months ended December 31, 2018.

On December 22, 2017, Legg Mason purchased and retired 5,568 shares of Legg Mason common stock from Shanda Asset Management Investment Limited ("Shanda") for an aggregate purchase price of $225,490. In addition, during the three and nine months ended December 31, 2017, Legg Mason purchased and retired 1,920 and 6,636 shares of its common stock for $74,000 and $253,649, respectively, through open market purchases. During the nine months ended December 31, 2017, Legg Mason also retired 344 shares of common stock for $13,074 under net share settlements of deferred compensation award vesting. Total retired shares, including those purchased from Shanda, reduced weighted-average shares outstanding by 6,606 and 3,922 for the three and nine months ended December 31, 2017, respectively.

The diluted EPS calculation for the three and nine months ended December 31, 2018, excludes 56 and 143 potential common shares, respectively, that are anti-dilutive due to the net loss in each period.

The diluted EPS calculation for the nine months ended December 31, 2017, also excludes any potential common shares issuable under the 14,205 warrants issued in connection with the repurchase of convertible notes in May 2012 because the market price of Legg Mason common stock did not exceed the exercise price, and therefore, the warrants would be antidilutive. The warrants expired unexercised in July 2017.

Options to purchase 1,980 shares and 2,224 shares for the three and nine months ended December 31, 2017, respectively, were not included in the computation of diluted EPS because the assumed proceeds from exercising such options, including the related income tax benefits, exceed the average price of the common shares for the period and, therefore, the options are deemed antidilutive.

Further, market- and performance-based awards are excluded from potential dilution until the designated market or performance condition is met. Unvested restricted shares for both the three and nine months ended December 31, 2018 and 2017, were antidilutive and, therefore, do not further impact diluted EPS.

Dividends per share declared in the three months ended December 31, 2018 and 2017, were $0.34 and $0.28, respectively, and in the nine months ended December 31, 2018 and 2017, were $1.02 and $0.84, respectively.